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New York Attorney General Files Lawsuit Against Prominent Crypto Entities for Deception

In a significant move, New York Attorney General Letitia James has launched legal proceedings against three leading crypto entities – Gemini Trust Company, powerful trading firm Genesis Global Capital, and industry giant Digital Currency Group (DCG). The complaint, which is causing a stir in the cryptocurrency sector, revolves around claims of having deceived over 230,000 investors, including at least 29,000 New Yorkers, resulting in losses exceeding $1 billion.

Allegations of Concealment at the Forefront

At the heart of the allegations is the assertion that Gemini was aware of the undersecured nature of Genesis’ loans. To make matters worse, these loans were apparently highly consolidated, primarily linked to a single entity – the trading firm Alameda, led by Sam Bankman-Fried. Despite this crucial knowledge, Gemini allegedly withheld such essential details from its vast pool of investors, thus misleading them.

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